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Unbundling political and economic rationality: A non-parametric approach tested on transport infrastructure in Spain

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  • Bertoméu-Sánchez, Salvador
  • Estache, Antonio

Abstract

This paper suggests a simple quantitative method to assess the extent to which public investment decisions are dominated by political or economic motivations. The true motivation can be identified by modeling each policy goal as the focus of the optimization anchoring a data envelopment analysis of the efficiency of the observed implementation. In other words, we rank performance based on how far observed behavior is from the optimal behavior under each possible goal, and the goal for which the distance is smaller reveals the specific motivation of investment or any policy decision for that matter. The approach is tested on Spain's land transport infrastructure policy since it is argued by many observers to be driven more by political than economic concerns, resulting in a mismatch between capacity investment and traffic demand. The method clearly shows that investments have generally been more consistent with a political objective (the centralization of economic power) than with an economic objective (maximizing mobility).

Suggested Citation

  • Bertoméu-Sánchez, Salvador & Estache, Antonio, 2017. "Unbundling political and economic rationality: A non-parametric approach tested on transport infrastructure in Spain," Transport Policy, Elsevier, vol. 59(C), pages 181-195.
    • Handle: RePEc:eee:trapol:v:59:y:2017:i:c:p:181-195
    DOI: 10.1016/j.tranpol.2017.07.012
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    References listed on IDEAS

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    3. Catalão, Francisco Pinheiro & Cruz, Carlos Oliveira & Sarmento, Joaquim Miranda, 2019. "The determinants of cost deviations and overruns in transport projects, an endogenous models approach," Transport Policy, Elsevier, vol. 74(C), pages 224-238.

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    More about this item

    Keywords

    Centralization; Data envelopment analysis; Mobility; Policy; Technical efficiency; Scale efficiency;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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